DuPont partners for pre-compounding venture in China

Material supplier DuPont Co. and Chenguang Chemical Research Institute, a subsidiary of China National Chemical Corp., have signed a letter of intent to form a 50/50 joint venture to make and market fluoroelastomer gums and pre-compounds in China. 

The two will build a new plant in Shanghai that is expected to be running by the second half of 2011.

Financial terms were not disclosed for the deal, which still needs to be finalized and receive government approvals.

“This investment will enhance DuPont’s ability to meet rapidly growing fluoroelastomer demand and to bring industry-leading products and technology-based solutions to customers in China and globally,” said Diane Gulyas, president of Wilmington, Del.-based DuPont Performance Polymers.

Chenguang Chemical Research Institute is an affiliate of China National Chemical Corp., a large state-owned enterprise established in May 2004.